Northrop Grumman Corp. (NOC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

RTX Corp.

Howmet Aerospace, Inc.

L3Harris Technologies, Inc.

General Dynamics Corp.

Northrop Grumman Corp.

Teledyne Technologies, Inc.

Honeywell International, Inc.

Textron, Inc.

Lockheed Martin Corp.

The Boeing Co.

TransDigm Group, Inc.

Why is Northrop Grumman Corp. ?

High Management Efficiency with a high ROCE of 14.47%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.30

The company declared negative results in Mar'25 after very positive results in Dec'24

OPERATING CASH FLOW(Y) Lowest at USD 2,972 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 21.38 times
DEBTORS TURNOVER RATIO(HY) Lowest at 4.49 times

With ROCE of 13.79%, it has a fair valuation with a 2.98 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.04%, its profits have risen by 72% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Northrop Grumman Corp. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Northrop Grumman Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Northrop Grumman Corp.

13.64%

0.99

27.30%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.14%

EBIT Growth (5y)

-0.20%

EBIT to Interest (avg)

6.30

Debt to EBITDA (avg)

2.44

Net Debt to Equity (avg)

0.87

Sales to Capital Employed (avg)

1.30

Tax Ratio

16.85%

Dividend Payout Ratio

28.41%

Pledged Shares

Institutional Holding

86.24%

ROCE (avg)

14.47%

ROE (avg)

31.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.70

EV to EBIT

21.57

EV to EBITDA

15.82

EV to Capital Employed

2.98

EV to Sales

2.07

PEG Ratio

0.24

Dividend Yield

1.82%

ROCE (Latest)

13.79%

ROE (Latest)

24.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.49

RAW MATERIAL COST(Y)

Fallen by 0.44% (YoY

NET PROFIT(9M)

Higher at USD 2,919 MM

OPERATING PROFIT(Q)

Highest at USD 1,544 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.92 %

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,972 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 21.38 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.49 times

INTEREST(Q)

Highest at USD 173 MM

Here's what is working for Northrop Grumman Corp.

Net Profit

At USD 2,919 MM has Grown at 116.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 4.49 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 1,544 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 14.92 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Higher at USD 2,919 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (USD MM)

Raw Material Cost

Fallen by 0.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Northrop Grumman Corp.

Interest

At USD 173 MM has Grown at 10.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 2,972 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 173 MM

in the last five periods and Increased by 10.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 21.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio